Producers Midstream is gauging customer interest in a pipeline project that would carry natural gas north of the Permian to multiple interstate connection points.

The Palo Duro Pipeline project is a 275-mile route that will use existing infrastructure to carry gas from Nolan to Wheeler counties in Texas. The project does not involve the construction of new facilities, according to the announcement from Producers Midstream.

Instead, the company will use an existing pipeline to connect with a header system in Wheeler County that extends into Oklahoma. Demand for the project is driven by growing power and industrial needs, the company said.

Producers Midstream is a portfolio company of Tailwater Capital. The open season lasts for two weeks and closes on July 14.

pipeline map
(Source: Producers Midstream)